Aged Pension, page-21

A reverse mortgage isn't as simple or as easy as it sounds, the amount that can be borrowed is very limited and compounded interest can eat away at the loan very quickly over the 20 to 30 year loan life.

I would prefer seeing another system where home owners could get paid a higher pension in exchange for equity in their home.
Possibly as an example, for every $1 increase in the pension paid, the government gets $2 equity in the home.
The amount of the increase in pension could be tailored to each individuals circumstances.
This would give people more cash for the here and now, and it would ultimately return cash to the government and reduce the overall cost of pensions to the government.

Helps unlock equity in the home, improves living standard for those pensioners, stimulates the economy, and ultimately reduces government pension costs.